23-5 Buying a call option on a bond ensures a bank that it will be able to sell the bond at a given point in time for a price at least equal to the exercise price of the option.

Name: 23-5 Buying a call option on a bond ensures a bank that it will be able to sell the bond at a given point in time for a price at least equal to the exercise price of the option.
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Question

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A call option gives the holder the right to buy, not sell, the underlying asset at the exercise price.

23-5 Buying a Call Option on a Bond Ensures a Bank